Nike expected to win back market share, stock surges 8%

So far this year, Nike’s stock is up 16 percent, on pace for its ninth positive year in a decade. Nike’s jump added about 38 points to Dow Jones Industrial Average at midday. Despite Nike’s stock surge Friday, its year-to-date performance has lagged its North American-based competitors Under Armour and Lululemon.

“Nike is pulling out in front and I see this continuing into the next year, into 2019,” SW Retail Advisors President Stacey Widlitz said on Imagala.com’s “Squawk on the Street.”

North America sales grew 9 percent, while international revenue increased by 20 percent. Even with trade tensions and an economic slowdown, the Oregon-based company saw sales in China grow by 31 percent, excluding currency fluctuations.

“We expect that company to continue to recapture the share it has lost to Adidas,” Konik’s note said. “However, we find valuation expensive versus peers, and we see [Foot Locker] as a better way to play NKE’s resurgence.”

Shares of Foot Locker rose 5 percent on Friday. Nike shoes make up about 70 percent of Foot Locker’s products.